Neil Forester hopes his experience will help him become the first indie mixed martial arts promoter in Ontario to actually make money

UFC bouts, like this one between Lyoto Machida (left) and Jon Jones at the Air Canada Centre in January, are grabbing most of the attention. But small promoters are trying to get in on the MMA action too.

Neil Forester knew even before his debut as a mixed martial arts fight promoter that his first event would lose money, even if he sold out every seat.

In the 22 months since the province legalized the nearly-no-holds-barred form of combat made popular by the Ultimate Fighting Championship, several independent promoters have tried — and failed — to cash in on the sport’s popularity.

But the 36-year-old Forester, who is also one of Canada’s foremost hip-hop concert promoters, hopes that background will help his fight series, Substance Cage Combat, which debuted last weekend at George Bell Arena, turn a profit.

Eventually.

“Everybody wanted to be the first out of the gate, but usually the guys who start are the ones who lose,” says Forester, who this spring promoted Canadian tours for rappers like Fabolous and Pusha T. “This is not a money-making thing. This is an investment in the sport and in the fighters.”

In August 2010, after years of lobbying by the UFC and a Queen’s Park demonstration, the provincial government lifted its ban on mixed martial arts, with both the UFC and the province touting the potential economic benefits of hosting events here.

And whenever the UFC is involved, cash does indeed flow.

The Ontario Athletic Commission collects five percent of the live gate from every mixed martial arts event in the province, and the three UFC events staged in Toronto have netted the commission a total of $865,000.

Anyone hosting a show in Ontario needs to purchase at least $2 million in liability insurance, then deposit enough money to cover every fighter’s payout into an escrow account.

A major player like the UFC can handle that task comfortably, but small-budget operators have struggled.

In 2011, there were 14 mixed martial arts events in Ontario, including two staged by the UFC.

The Score television network underwrote a fighting series, but it ended when the network was sold to Rogers, making the promoters it once worked with truly independent.

Last year there were 10 events, but so far in 2013 Forester’s show is the only mixed martial arts event scheduled.

Sarnia-based promoter Woodrow James says he lost money on his first show and broke even on his second. He says the key to profit in the future is keeping events small and local.

“Straight up, just doing a show to make money, you need to be in a small venue in a small city with nothing going on, so everyone’s there,” says James, whose Avant Guard promotions worked with the Score Fighting Series. “People are there to see their buddy, and it’s a bonus if the big name is on the card.”

Forester hopes to close the revenue gap by enlisting corporate sponsors. Companies like Wild Wing and 888 Poker have signed up so far.

“It’s the key to success or failure,” says Forester, who also co-owns Grant’s MMA, a gym in North York. “I’ll take a $3000 or $4000 loss, but not a $30,000 hit. Sponsors are our saving grace.”

Forester says Substance also benefits from relying on local fighters, who are eager for an opportunity to compete, happy to help build a fight franchise in Ontario, and understanding about the rock-bottom pay scale.

Every fighter on Saturday’s card made $400, whether he was competing in the preliminary bout or the main event.

It’s a puny payday, even by local event standards, but Substance’s matchmaker, Sean Pierson, says finding willing fighters was the easy part.

The challenge, he says, is finding replacements for injured fighters who will fight on short notice and for short money. Heading out of province to find fighters means money.

“There are additional costs we have to anticipate,” says Pierson, who is still an active UFC fighter. “Flights. Medical (tests). On a small show, that’s where the troubles lie.”

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